AAL American Airlines - Burning Through $70 million A DayAmerican Airlines 1st Quarter numbers are in. As expected, they weren't good.
AAL just posted its biggest loss since the Great Recession in 2008 as they lost $2.2 Billion. In the 2nd quarter they are burning through $70 million dollars per day. SO if you're wondering how the 2nd quarter numbers will look, that should give you somewhat of an idea. US airline travel is down approximately 95% compared to the same time last year. In attempts to cut costs, around 39,000 employees have volunteered for unpaid pr partially paid leave.
Brief reminder, airlines can most definitely fail. American Airlines is still fresh off it's bankruptcy that occurred in late 2011.
Technical:
Stock prices at the moments seem to be pure gambles as some are completing deviating from TA and fundamentals. Would only buy to go in and out for quick trades. We're not long on airlines until we see flights filing up again. If going long for a quick scalp, look for support around $10.45 and $9.00 with a tight stop loss. As per bottom, we've seen some consolidation in the current region we're in but we're not yet comfortable here. Any further drops we can look at $6.94, $4.55, & $1.09.
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